2016-TII-92-HC-DEL-TP
NORTEL NETWORKS SINGAPORE PTE LTD Vs DCIT :
DELHI HIGH COURT (Dated: November 30, 2016)
Income Tax - Writ - Transfer pricing & winding up proceedings
The petitioner is a Singapore-based company and it seeks a limited relief of direction to the ITAT to decide its pending appeal. The petitioner had approached ITAT against the directions issued by DRP. Assessment was made against AO's determination based upon the transfer pricing exercise. Although a number of hearings took place before ITAT but the appeal could not be disposed off. The petitioner contended that since it is facing winding up proceedings in Singapore, therefore, the pendency was causing it grave prejudice.
On appal, the HC held that,
Whether pending appeals deserve to be decided expeditiously when such pendency is causing prejudice to the winding up proceedings - YES: HC
+ An affidavit filed by the official liquidator shows that the winding-up proceedings have remained dormant and that further process is not possible till its tax liability in India is ascertained. The winding-up order appears to have been made by the Singapore High Court on as early as on Oct 17, 2014. Therefore, this Court is of the opinion that the ITAT should consider the appeal pending before it and decide it as expeditiously as possible.
Assessee's petition allowed
2016-TII-64-HC-MUM-INTL
RELIANCE COMMUNICATIONS LTD Vs DDIT : BOMBAY HIGH COURT (Dated: November 28, 2016)
Income tax - Sections 254(2) & 260A
Keywords - rectification application & recall of order
The assessee company together with other companies wanted to make payments to the non–resident companies towards purchase of software without deduction of tax at source and filed applications u/s 195(2). The AO rejected the applications of the assessee and passed an order u/s 195 holding that the payment made towards purchase of software was in the nature of royalty, therefore, liable to be taxed in India. On appeal, the ITAT upheld AO's order. Consequent to the same, the Assessee filed a rectification application before the ITAT seeking recall of the aforesaid order of ITAT, and in addition, also challenged the same before this High Court.
On appeal, the High Court held that,
Whether an appeal deserves dismissal, if the appellant himself withdraws the same - YES: HC
+ It is to be noted that the ITAT has allowed the assessees application for rectification filed u/s 254(2) and has accordingly recalled its previous order. In view of the same, the assessee's has sought to withdraw all the appeals filed before this Court. Therefore, this court dismisses the assessee's appeal as withdrawn.
Assessee's appeal dismissed